MN
Mahnoor Nadeem
Answers (2)
MN
Answered
Received payment covering a six-month magazine subscription.
A) Prepaid expense
B) Accrued expense
C) Unearned revenue
D) Accrued revenue
E) None of these choices
A) Prepaid expense
B) Accrued expense
C) Unearned revenue
D) Accrued revenue
E) None of these choices
On May 03, 2024
C
MN
Answered
As a condition of giving Doyle a thirty-year loan for $100,000,the Caldwell Bank requires that Doyle procure a surety.Doyle pays Sal $5000 to serve in this role.Later,Doyle and the bank make a binding contract to extend the term of the debt from thirty years to thirty years and three months.Will this change discharge Sal from his obligation? Make no assumptions except those stated here.
On May 02, 2024
It is very unlikely that this change would discharge Sal from his obligation.Sal is a compensated surety.Compensated sureties must show that they will be harmed by an extension of time before they are relieved of responsibility because of a binding extension without their consent.A compensated surety must show that a change in the contract was both material and prejudicial to him if he is to be relieved of his obligation as surety.In this case,the change in the term of the loan amounts to less than 1% and the facts give no other reason to think that the change is material or that it prejudices Sal.